There has long been a debate by contractors as to whether they need to carry insurance. This is mostly due to the additional costs to carry an insurance plan and whether or not the insurance is actually going to be used.
Well, contractor insurance is just like automobile or home insurance. Contractor insurance is there if a person needs it, so that they have peace of mind with every job that they do. Plus, when contractors have this insurance, all their clients will be happy to know that they are covered for anything that happens when the contractor is working on their property!
Here are 4 reasons every contractor needs insurance before being hired for a construction project:
1. Injuries of the Contractor as Work is Being Completed
The contractor’s insurance will cover any injuries that the contractor may incur when they are completing work on any project. That means that the client will not need to worry about using their own insurance if their contractor slips and falls while walking up the sidewalk one day.
2. Coverage of All the Contractor’s Workers
Since most contractors do not work on their own, their insurance will also cover all the people that they employ for each job.
3. Injuries to Third Parties or Damage to a Third Party’s Property
There are times when a contractor may inadvertently cause damage to another person’s property when they are working on a job. Thankfully, their client will not need to pay for those damages, as it is covered by the contractor’s insurance.
4. Injury to a Person or Damage to a Property Due to Defective Work
While no contractor wants to do defective work, it can happen on occasion. It can be bad enough if is causes injury to the contractor’s client or the client’s property, but it is worse if it also happens to a client’s neighbor. The contractor’s insurance would also cover all this as well, so that the client would not need to pay out of pocket or use their own insurance.
If you are a contractor…
You need to make sure that you have the insurance that you need if any of the above occurs when you are on the job. When you have this insurance, you can ensure that your company will survive any accidents or mistakes that may occur when you are on the job. Without it, you can be bankrupt and unable to do the job you love the most. So, call your insurance agent today and get the coverage you need.
And if you are a homeowner or business owner…
Looking to hire a contractor, do not let them begin any work without seeing a copy of their insurance coverage. Your future may depend on it!